Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — Investor Presentation (May 2012)
32 slides from Bombardier Inc. Class A's investor presentation, May 18, 2012
Slide 1: Presentation to Investors
PRESENTATION TO INVESTORS SHIRLEY CHÉNIER SENIOR DIRECTOR, INVESTOR RELATIONS MAY 18, 2012
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation includes forward looking statements, which may involve, but are not limited to: statements with respect to our objectives, guidance, targets, goals, priorities, markets and strategies, financial position, beliefs, prospects, plans, expectations, anticipat
Slide 3: Bombardier – A Global Market Leader
BOMBARDIER – A GLOBAL MARKET LEADER Diversified revenues of $18.3 billion* THIRD LARGEST with customers in more than CIVIL AIRCRAFT 100 countries MANUFACTURER WORLDWIDE Net income of $837 million* (EPS of $0.47), with excellent growth potential GLOBAL A strong backlog of $53.9 billion** LEADER IN re
Slide 4: Operating in Two Broad Industries
OPERATING IN TWO BROAD INDUSTRIES AEROSPACE TRANSPORTATION A world leader in the design, manufacture and support of innovative aviation products for the World leader in the design, manufacture and business, commercial, specialized and support of rail equipment and systems amphibious aircraft markets
Slide 5: Investment Thesis
INVESTMENT THESIS PRODUCTS Investing in leading mobility solutions Well positioned to capture global growth MARKETS opportunities DISCIPLINE Strong financial discipline 5
Slide 6: Aircraft Programs Launched Since 1989
30 AIRCRAFT PROGRAMS LAUNCHED SINCE 1989 CRJ100/200 (1989) Learjet 31-A (1990) Learjet 60 (1990) Bombardier 415 (1991) Learjet 45 (1992) Q200 (1992) Challenger 604 (1993) Global Express (1993) Q400 (1995) CRJ700 (1997) Challenger 300 (1999) CRJ900 (2000) Global 5000 (2001) Learjet 45 XR (2002) Learj
Slide 7: Investments in New Products Will Drive $8 to $12 Billion of Additional Revenues
INVESTMENTS IN NEW PRODUCTS WILL DRIVE $8 TO $12 BILLION OF ADDITIONAL REVENUES PER YEAR IN AEROSPACE Total market of 7,000 units over 20 years Target to capture 50% of global market share in 100 – 149 seat market $5 to $8 billion of additional annual revenues (including related services) CSeries Fa
Slide 8: CSeries Is a Game Changer
CSERIES IS A GAME CHANGER TRIPLE APPEAL VALUE PROPOSITION Environment: At the forefront of technology, e.g. geared 1 turbofan engine – 20% fewer CO2 emissions Airline: Route flexibility and unbeatable economics (20% fuel consumption advantage against in-production aircraft) Communities: Low noise si
Slide 9: Our Growth Strategy Rests on a Leading Portfolio of Products/Services
OUR GROWTH STRATEGY RESTS ON A LEADING PORTFOLIO OF PRODUCTS/SERVICES BT is responding to changing needs and will continue to lead the rail technology industry by focusing on: Developing innovative & Enabling more integrated Building local capabilities A cost-optimized solutions B networks C & long-
Slide 10: Infrastructure, Urbanization & Mobility Continue to Drive Needs for Our Products
INFRASTRUCTURE, URBANIZATION & MOBILITY, AS A WELL AS BUDGET CONSTRAINTS WILL CONTINUE TO DRIVE THE NEEDS FOR OUR PRODUCTS Maximize use of existing infrastructure TWINDEXX double-deck trains TRAXX AC3 locomotives CITYFLO & CBTC signalling Infrastructure Reduce energy consumption and life Innovative
Slide 11: Regional Integration Driving Need for Seamless Connectivity
REGIONAL INTEGRATION IS DRIVING THE NEED FOR SEAMLESS CONNECTIVITY AND INTEROPERABILITY B ACROSS NETWORKS Enable cross-border operations TRAXX MS F140 locomotives ZEFIRO very high speed train Regional Integration Develop compatible technology INTERFLO 450 signalling system More Integrated Networks D
Slide 12: Governments and Operators Looking to Private Sector to Improve Rail Efficiency
TO MEET MOBILITY NEEDS, GOVERNMENTS AND C OPERATORS ARE LOOKING TO THE PRIVATE SECTOR TO IMPROVE RAIL EFFICIENCY Localize production Manufacturing of Delhi metro São Paolo assembly in Brazil Create public private partnerships Emerging market investment Gautrain project in South Africa Build local ca
Slide 13: Investment Thesis
INVESTMENT THESIS PRODUCTS Investing in leading mobility solutions Well positioned to capture global MARKETS growth opportunities DISCIPLINE Strong financial discipline
Slide 14: Emerging Markets Expected to Account for Substantial Portion of Aircraft Deliveries
EMERGING MARKETS EXPECTED TO ACCOUNT FOR SUBSTANTIAL PORTION OF AIRCRAFT DELIVERIES Expected commercial and business jet aircraft deliveries 2011 – 2030 Total 37,100 deliveries Bombardier Aerospace Europe (incl. Russia / CIS) North America 7,885 14,460 China 4,670 Middle East 1,605 Latin America Asi
Slide 15: Bombardier Is the Market Leader in the Business Aircraft Market
BOMBARDIER IS THE MARKET LEADER IN THE BUSINESS AIRCRAFT MARKET… Top three delivery market shares Average, 2006-2010 Super Extra Super Extra Extra Large Light Midsize Large Ultra Long Light Light Midsize Large & Long CJ3/CJ4 XLS+ L60XR H900XP CL300 CL605/800 G5000 G550 #1 60% 70% 75% 45% 51% 47% 57%
Slide 16: Very Well Positioned in the 40-149 Seat Commercial Aircraft Segment
… AND VERY WELL POSITIONNED IN THE 40-149 SEAT COMMERCIAL AIRCRAFT SEGMENT Turboprops Q400 NextGen ATR 72 Regional Jets Embraer COMAC CRJ NextGen MRJ SSJ E170/175/190 ARJ21 Single-Aisle Mainline Jets Embraer Airbus Boeing CSeries E195 A318/A319 737-600/700 Bombardier is the leader in the regional ai
Slide 17: Bombardier Transportation Global Presence
BOMBARDIER TRANSPORTION GLOBAL PRESENCE 62 production and engineering sites in 25 countries Workforce of 36,200 employees located in 40 countries 17 Customers in more than 60 countries
Slide 18: BT Continues to Secure Orders Around the World
BT CONTINUES TO SECURE ORDERS AROUND THE WORLD WITH SIGNIFICANT OPPORTUNITIES IN EMERGING MARKETS Across the globe… OMNEO double-deck trains CITYFLO 650 signalling for the SNCF for Sao Paolo Metro line 5 $11B1 (Feb 2010) (Sept 2011) $97M 59 double-deck trains Light Rail Transit system for the Swiss
Slide 19: Rail Technology Market Provides Steady and Sustainable Growth Worldwide
RAIL TECHNOLOGY MARKET PROVIDES STEADY AND SUSTAINABLE GROWTH WORLDWIDE Forecasted accessible market by region ² Highlights on some key markets (in billions of $USD) Asia-Pacific Market India and China continue to drive the growth in 107,7 urban ROS, intercity and freight fleets in line with infrast
Slide 20: Localizing Production Facilities Furthered Commitment in India
LOCALIZING OUR PRODUCTION FACILITIES FURTHERED OUR STRATEGIC COMMITMENT IN INDIA AND ENHANCED OUR LOCAL CAPABILITIES New Delhi Sales, Marketing, Project & Depot offices Kolkata Savli, Gujurat Sales & Marketing offices Railway manufacturing site Vadodara, Gujurat PPC & SW development Center Hyderabad
Slide 21: Investment Thesis
INVESTMENT THESIS PRODUCTS Investing in leading mobility solutions Well positioned to capture global growth MARKETS opportunities DISCIPLINE Strong financial discipline
Slide 22: Stable Revenues Even Through Challenging Environments
STABLE REVENUES EVEN THROUGH CHALLENGING ENVIRONMENTS Consolidated Revenues (in billions of $USD) Canadian GAAP IFRS $19.7 $19.4 $18.3 $17.9 $17.5 $14.9 $9.8 $10.0 $7.8 $9.1 $9.8 $6.6 $9.7 $10.0 $9.4 $8.3 $8.8 $8.6 (1) (2) FY2007 FY2008 FY2009 FY2010 FY2011 CY2011 Aerospace Transportation 1 Fiscal y
Slide 23: Strong Track Record of Profitability with More Opportunity Going Forward
STRONG TRACK RECORD OF PROFITABILITY WITH MORE OPPORTUNITY GOING FORWARD Aerospace EBIT from continuing operations1 Transportation EBIT from continuing operations1 (in millions of $USD) (in millions of $USD) Canadian GAAP IFRS Canadian GAAP IFRS 9.0% 7.2% 7.2% Financial Overview 6.2% 5.5% 6.3% 4.5%
Slide 24: Segmented Information
SEGMENTED INFORMATION THREE-MONTH PERIODS ENDED (in millions of dollars) MARCH 31, 2012 APRIL 30, 2011 REVENUES AEROSPACE 1,499 2,188 TRANSPORTATION 2,006 2,473 TOTAL REVENUES 3,505 4,661 EBIT AEROSPACE 91 141 TRANSPORTATION 124 171 TOTAL EBIT 215 312 24
Slide 25: Financial Results Overview
FINANCIAL RESULTS OVERVIEW THREE-MONTH PERIODS ENDED (in millions of dollars, except per share amounts) MARCH 31, 2012 APRIL 30, 2011 REVENUES 3,505 4,661 EBIT 215 312 FINANCING EXPENSE, NET - 36 EBT 215 276 INCOME TAXES 25 56 NET INCOME 190 220 EPS (in dollars) 0.10 0.12 25
Slide 26: Free Cash Flow
FREE CASH FLOW THREE-MONTH PERIODS ENDED (in millions of dollars) MARCH 31, 2012 APRIL 30, 2011 AEROSPACE Cash flows from operating (200) 122 activities Net additions to PPE & (372) (290) intangible assets TOTAL AEROSPACE (572) (168) TRANSPORTATION (100) (168) INTEREST AND TAXES (40) (73) FREE CASH
Slide 27: We Are Proactively Managing Our Liquidity
WE ARE PROACTIVELY MANAGING OUR LIQUIDITY Debt Maturity Profile (notional amount) Short-term Capital Resources (as of March 31, 2012 - in millions of dollars) (as at - in billions of dollars) 4.6 Debt Unchanged by the 4.1 Liability Exercises 0.7 Debt Refinanced with 0.7 0.7 Issuance of New Debt New
Slide 28: We Are Maintaining Our Outlook for 2012
WE ARE MAINTAINING OUR OUTLOOK FOR 2012 Transportation Continue to target an 8% EBIT margin by 2013 Anticipate to generate free cash flow for the year generally in line with profitability Level of new orders expected to translate into a book-to-bill ratio of approximately 1 Aerospace Deliveries of a
Slide 29: Conclusion – 2012 to Be an Exciting Year
CONCLUSION – 2012 TO BE AN EXCITING YEAR We are making progress: The execution issues on three specific contracts at Transportation are getting solved and measures have been taken to avoid such problems in the future Our product developments in Aerospace are progressing well with the assembly of the
Slide 30: Today, the Success Story Continues … CSeries
TODAY, THE SUCCESS STORY CONTINUES … CSeries 30
Slide 31: Today, the Success Story Continues … Zefiro
TODAY, THE SUCCESS STORY CONTINUES … Zefiro 31
Slide 32: Questions?
QUESTIONS? the evolution of mobility